Summary
Since the recession, Canada has expanded their gross domestic products, employed more workers and regained the stock market-their economy has improved. However, this doesn't seem to have the same affect on small businesses today such as Duke's Cycle. The owner of this high end bike store claims that it is harder for retail stores to recover from the recession. The number of employees depends on the demand of customers and with a business' lack of sales, there is a limited number of people that are hired. With the affects of the recession in hand, the confidence that small business owners have are weakening compared to earlier this year. Also, they are less willing to invest in things that can potentially benefit them in the long run. However, these businesses are slowly emerging from their economic downturn and will hopefully return back to their previous condition.
- Ashley Jang, Timothy Leung, Anna Zhu
Since its the recession which affects the economy of Canada. Most bussiness is still struggling to servive. I think that small businesses should come out with new business plans. Instead of complaining about the recession.
ReplyDeleteI can understand why it is harder for smaller retail businesses to recover from the recession. Sales might be low, and low sales means you can't do as much for your business, such as hiring more people or investing into something. The only thing you can really do is to just wait it out.
ReplyDeleteHowever, there are some recession funds out there, so that may help your business recover faster.
@Jian
ReplyDeleteI have to agree that these small businesses should be reviewing their business plans as it seems to show that currently with their business plans, they cannot recoupe their earnings.
And its "survive", not "servive".
-Tim
@ Jimmy
ReplyDeleteI also agree that businesses could get the help of recession funds, but other business may have different ideas on trying to bounce back to their original state in business.
-Anna Zhu
It makes sense that larger businesses recover more quickly then smaller businesses because they have more resources and are more stable. Hopefully as time goes, the small businesses can recover from this recession.
ReplyDeleteI have to agree to the article that small business would have more troubles in recovering from recession. But can't small business owners temporary close their store and wait until the economy recovers?
ReplyDelete@ Elisa
ReplyDeleteI think closing their store until the economy recovers wouldn't be a smart idea because the recession could be an opportunity that could improve their business in the future.
-Anna Zhu
@Jian
ReplyDeleteI also agree that they should look over their business plan to solve this problem but it's tough when they're struggling since they're the smaller businesses. However these recoveries gradually gets better since it's impossible to recover overnight.
-Anna Zhu
i agree that large companies recover fast, and small business doesn't. something the small business can do is to find a investor to invest in their company so they will have more money to run or expand their company.
ReplyDeleteEva Li
This article clearly displays the common problem faced by most small businesses due to the recession. I totally agree with the fact that a small business to recover from the recession is much harder than it is for a large franchise business. Small businesses are less developed in the market, so for them this recession comes down twice as harder. However, businesses shouldn't lose hope and come up with new techniques to help their business rise. Refreshing their business plan and coming up with new ideas to reach out to the customers will gradually help them recover from the recession.
ReplyDelete@Elisa & Jimmy:
ReplyDeleteI think that while waiting for the recession or end, we shouldn't just close down or do nothing. Jimmy's suggestion of recession funds is quite useful. Also, try to come up with plans that would help sustain your business.
I agree with what Jimmy said above. In such hard times, the last thing that anyone wants to do is spend on luxury goods. If a 10 dollar meal can make you full, why eat a 30 dollar meal? If a 100 dollar bike can do the same job as a high end bike like the ones Duke's Cycle sells, why buy the more expensive one? However, I still believe it is just a matter of time before people start living the high-end life style again. They will because people don't just stop what they do; they will do everything in their power to live the same way they did 3 years ago, so Duke's Cycle just has to wait it out.
ReplyDelete